13 Exercise 13-7 Analyzing liquidity LO P3 22 oints Simon Company's year-end balance sheets follow. Current Yr 1 Ye Ago 2 Yrs Ago 02:18:33 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 9,375 5,000 255,000 230,500 $ 445,000 $ 377,500 eBook $ 129,800 $ 75,250 $ 51,250 Hint 98,500 163,500 131, 100 $ 523,000 101,500 83,500 163,500 163,500 104,750 79,250 $ 445,000 $ 377,500 References (1-a) Compute the current ratio for each of the three years. (1-6) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-6) Did the acid-test ratio improve or worsen over the three year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio C aw Improved Worsened Help Common stock, $10 por value Retained earnings Total liabilities and equity 163,500 131, 100 $ 523,000 163,500 163,500 104,750 79,250 $ 445,000 $ 377,500 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid Test Ratio Choose Numerator: 1 Choose Denominatori Acid-Test Ratio Acid-test ratio to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago to 1 to 1 Cost of goods sold Current assets Current liabilities Current receivables Required 28 CH.13 - CONNECT ASSIGNMENT Saved 13 $ 129,900 $ 75,250 $ 51,250 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 98,500 163,500 131, 100 $ 523,000 101,500 83,500 163,500 163,500 104,750 79,250 $ 445,000 $ 377,500 7.72 points 8 02:17:39 (1-a) Compute the current ratio for each of the three years. (1-6) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period? eBook Complete this question by entering your answers in the tabs below. Hint Required 1A Required 18 Required 2A Required 2B References Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio 6.